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SUKANYA SAMRIDDHI YOJANA

10th September, 2024

SUKANYA SAMRIDDHI YOJANA

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Picture Courtesy: https://www.news9live.com/business/personal-finance/sukanya-samriddhi-yojana-new-rules-from-october-2024-ssy-interest-rates-guidelines-2685969 

Context:

The Union Government has announced new rules for the Sukanya Samriddhi Yojana (SSY) account.

About Sukanya Samriddhi Yojana

  • It is a government-backed savings scheme launched in 2015, as part of the Beti Bachao Beti Padhao campaign.
  • The account can be opened at any post office or bank location in India.
  • A natural or legal guardian can open an SSY account on behalf of a girl child between the date of birth and 10 years.
      • The guardian can open accounts for up to two females, and if there are twins or triplets, a third account can be opened using the appropriate medical certificate.
  • The account requires a minimum deposit of ₹250 and has an annual limit of ₹1.5 lakh per financial year.
      • Deposits can be made for up to 14 years from the account's opening date.
  • It provides a competitive interest rate that is compounded annually. The government notifies the rate quarterly.
      • For example; the interest rate between 1 July 2024 to 31 September 2024 is 8.2%.
  • Contributions up to ₹1.5 lakh per year are eligible for a tax deduction under Section 80C of the Income Tax Act.
  • The guardian manages the account until the girl reaches the age of 18, after that point she can manage it independently, with deposits still made by the guardian or an authorised person.

New Rule Introduced

●If the SSY account was not initially opened by a legal guardian, it must be transferred to a legal guardian by the deadline by October 1, 2024.

●Failure to comply will result in the account's permanent closure.

Withdrawals and Maturity

  • The account can be partially withdrawn up to 50% for higher education expenses after turning 18, and can also be used to cover marriage expenses.
  • The account matures 21 years from the date of opening. However, if the girl marries before the completion of 21 years, the account must be closed before the marriage.
  • The account can be prematurely closed in extreme hardship situations, such as medical emergencies, with the government's approval.

Important Initiatives for the welfare and empowerment of the girl child

Initiative

Explanation

Beti Bachao Beti Padhao (BBBP)

●A campaign aimed at improving the child-sex ratio and promoting the education and empowerment of girls.

●It includes awareness programs and financial incentives.

Ujjawala Scheme

●It provides support to women and children victims of trafficking for commercial sexual exploitation, offering rehabilitation and legal support.

National Scheme of Incentive to Girls for Secondary Education (NSIGSE)

●It offers financial incentives to families to encourage the education of girls at the secondary school level.

Integrated Child Development Services (ICDS)

●A program providing health, nutrition, and education services to children under 6 years of age, including girls, through Anganwadi centres.

RTE Act (Right of Children to Free and Compulsory Education)

●It ensures free and compulsory education for children aged 6 to 14 years, including girls, and mandates 25% reservation for disadvantaged groups.

Source:

News9live

Vikaspedia

PRACTICE QUESTION

Q. Consider the following statements about the Sukanya Samriddhi Yojana (SSY):

1. The Sukanya Samriddhi Yojana (SSY) account can be opened for girls up to the age of 10 years.

2. The maximum amount that can be deposited in an SSY account in a financial year is Rs. 1.5 lakh.

3.  The interest rates are revised yearly by the Government of India.

4. The maturity amount is taxable at the time of withdrawal.

How many of the above statements are correct?

A) Only one

B) Only two

C) Only three

D) All four

 

Answer: B

Explanation:

Statement 1 is correct: The Sukanya Samriddhi Yojana (SSY) account can be opened for a girl child up to her 10th birthday, in line with the scheme's rules.

Statement 2 is correct: The maximum deposit limit for an SSY account is Rs. 1.5 lakh per financial year, set by the Government of India.

Statement 3 is incorrect: The interest rates for the SSY are revised quarterly, not yearly, to align with market conditions and economic factors.

Statement 4 is incorrect: The maturity amount received from the SSY is tax-free at the time of withdrawal.

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